Forex: USD/JPY: Dollar tumbles and falls below 89.00 to trade at the lowest level in month

By IBT Staff Reporter On 11/16/09 AT 2:16 PM

FXstreet.com (Córdoba) - The Dollar is falling sharply across the board as stocks and gold continue to rally. USD/JPY fell below 89.00 for the first time since mid October. So far today, the pair bottomed at 88.75 (intra-day low) and is falling considerably for the second session in a row, accumulating a decline of more than 150 pips. To the downside the next support could be located at 88.60 (Oct 2 low) and below at 88.35.

Valeria Bednarik, Fxstreet.com collaborator, affirms: As comment in previous update, pair general tone remains bearish. Now close to daily lows, and under 20 SMA in the hourly, pair is attempting a retest of the 89.10/20 support area. If the last give up, expect a downside acceleration, supported also by bigger time frames.